Reply for Kathrina Katcher

R‌‍‍‌‌‍‌‌‌‌‌‍‍‍‌‌‌‌‍eply ( Katharina Karcher ) Artificial Intelligence (AI) supporting strategic marketing planning Artificial Intelligence (AI) supporting strategic marketing planning AI can be used in many areas, and it has been argued that out of all business operations, marketing will gain the most from its use. (Davenport et al., 2021). This is because in order to develop an efficient and effective marketing strategy, consumer’s behaviour, needs and wants can be analysed and enhanced with the help of this technology (Davenport et al., 2021). Segmentation During the segmentation stage, AI can for example be used to explore changing consumer preferences and behavioural patterns in unstructured data, which is impossible for human marketers to discover (Huang & Rust, 2021). Strategies can be improved by segmenting customers in more valuable groups.Data mining for example, enables firms to divide travellers based on the meaning a destination has to them, as compared to the classic clustering methods (Valls et al., 2018). Targeting In order to choose the ideal segment(s) to target, ‘thinking AI’ is required, as the choice depends on “domain knowledge, judgement, and intuition” (Huang & Rust, 2021). Based on the vast amount of data available, modern technology can recommend various potential target markets for a company to speak to, and develop predictive modelling for future success (Simester et al., 2019). Positioning The positioning of a company in a competitively advantageous position of a brand can be supported by data mining techniques, distilling a customer-based perceptual map (Daabes & Kharbat, 2017). Generally, ‘feeling AI’ helps to speak to the targeted custom‌‍‍‌‌‍‌‌‌‌‌‍‍‍‌‌‌‌‍ers and develop the right communication strategy. Downsides There are still various downsides however, that marketers should be aware of. One disadvantage of using AI within a marketing strategy is the high costs involved, making this tool not available to every marketer. Another downside, despite big advances in the technology, is that it cannot replicate a human and may not mirror emotions or behaviour accurately. Can you think of any brands that have (un-)successfully used AI in their segmentation, targeting, positioning strategy?

References:

Daabes, A. S. A. & Kharbat, F. F. (2017) Customer-based perceptual map as a marketing intelligence source. International Journal of Economics and Business Research 13(4): 360-379. DOI: https://doi.org/10.1504/IJEBR.2017.084381 

Davenport, T. H., Guha, A. & Grewal, D. (2021) How to Design an AI Marketing Strategy. Available from: https://hbr.org/2021/07/how-to-design-an-ai-marketing-strategy [Accessed 02 August 2022].

 Huang, M.-H. & Rust, R. T. (2020) A strategic framework for artificial intelligence in marketing. Journal of the Academy of Marketing Science 49:30-50. DOI: https://doi.org/10.1007/s11747-020-00749-9 

Simester, D., Timoshenko, A. & Zoumpoulis, S. I. (2019) Targeting prospective customers: Robustness of machine-learning methods to typical data challenges. Management Science 66(6): 2495-2522. DOI: https://doi.org/10.1287/mnsc.2019.3308 Valls, A., Gibert, K., Orellana, A. & Anton-Clave, S. (2018) 

Using ontology-based clustering to understand the push and pull factors for British tourists visiting a Mediterranean coastal destination. Information & Management 55(2): 145-159. DOI: https://doi.org/10.1016/j.im.2‌‍‍‌‌‍‌‌‌‌‌‍‍‍‌‌‌‌‍017.05.002 less

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